Electronics giants Panasonic have officially pulled the plug on their attempt to crack the smartphone market. Company president Kazuhiro Tsuga told Reuters on Wednesday that the company’s failing performance in the consumer smartphone market was “not acceptable”.
Whilst they failed to appeal to general consumers, Panasonic will still continue to develop and release smartphones intended for business use. When the company revealed their “Eluga” line of smartphones last year, the line was intended to revive consumer interest in the flagging division. Contrary to their hopes, the line of smartphones was poorly received by critics and consumers, and Panasonic’s mobile division lost over $81 million in the last fiscal year. Company losses for this year are still targeted for around $11 million.
In his interview with Reuters, Tsuga also warned that Panasonic would be cutting any division that did not measure up to company standards within 3 years. In total, the company has posted a loss totalling up to $15 billion in the last two fiscal years alone, a far cry from Panasonic’s popularity before the rise of smartphones, when the company was the second largest handset maker in Japan.